LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 27, 1997
         
         
      TO: Honorable Harvey Hilderbran, Chair            IN RE:  House Bill No. 2498
          Committee on Human Services                              By: Wise
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2498 ( Relating 
to the regulation of certain child-care facilities and registered 
family homes.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2498-As Introduced
         
Implementing the provisions of the bill would result in a net 
negative impact of $(284,930) to General Revenue Related Funds 
through the biennium ending August 31, 1999.
         
The bill would make no appropriation but could provide the legal 
basis for an appropriation of funds to implement the provisions 
of the bill.
         
 
Fiscal Analysis
 
The bill would amend Chapter 42 of the Human Resources Code 
to require the Department of Protective and Regulatory Services 
(PRS) to search its central registry of child abuse and neglect 
reports before issuing or renewing a child-care license, registration, 
or certification.  The central registry search must encompass 
applicants, owners, and employees of a child-care facility or 
family home.  The effective date for the bill would be September 
1, 1997.
 
Methodolgy
 
PRS currently searches the central registry before issuing a 
license, registration, or certification to determine whether 
the following persons have a history of child abuse or neglect: 
1) the director and owner/operator of a child-care facility, 
and 2) anyone over 14 years old in a family home.  PRS does 
not renew licenses, registrations, or certifications.

It 
is assumed that PRS would issue 2,439 new child-care facility 
licenses or certifications each year.  It is also assumed that 
the number of applicants, owners, and employees per facility 
would range from 2.1 in a small foster family home to 30 in 
a large child-care institution.  These numbers do not include 
directors and owner/operators whose history is already searched.

The 
cost to search the central registry assumes that: 1) one FTE 
could conduct 15,000 searches per year, 2) 2% of the searches 
would result in a positive match requiring additional research, 
and 3) 25% of the individuals with a positive match would request 
a waiver or file an appeal.
The probable fiscal implications of implementing the provisions 
of the bill during each of the first five years following passage 
is estimated as follows:
 
Five Year Impact:
 
Fiscal Year Probable           Change in Number   
            Savings/(Cost)     of State                                                                   
            from General       Employees from                                                             
            Revenue Fund       FY 1997                                                                    
            0001                                                                                           
       1998        ($142,465)               3.4                                                      
       1998         (142,465)               3.4                                                      
       2000         (142,465)               3.4                                                      
       2001         (142,465)               3.4                                                      
       2002         (142,465)               3.4                                                      
 
 
         Net Impact on General Revenue Related Funds:
 
The probable fiscal implication to General Revenue related funds 
during each of the first five years is estimated as follows:
 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998           ($142,465)
               1999            (142,465)
               2000            (142,465)
               2001            (142,465)
               2002            (142,465)
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   530   Department of Protective and Regulatory Services
                                         
                      LBB Staff:   JK ,BB ,NM